Continued Debate over the US Minimum Wage

It seems remarkable that the USA federal minimum wage has remained at $7.25 since 2009. However, there are a number of nuanced arguments that suggests that a new federal minimum wage might be introduced.

But the reality is that many cities and states have their own minimum wages, with state-level minimum wages varying to reflect local labour markets. However, will a higher minimum wage have a positive effect?

On one hand, it is likely to increase worker productivity and reduce labour turnover, but might it increase costs and business failures and encourage pay increases elsewhere in the labour market?